Jul 30, 2020 - Technology

Apple crushes earnings expectations

Tim Cook, kicking off Apple’s September 2018 event.

Tim Cook, kicking off Apple’s September 2018 event. Photo: Apple

Apple on Thursday handily beat expectations for quarterly sales and earnings and announced a 4-for-1 stock split.

Why it matters: The move comes a day after Congressional hearings and as other Big Tech firms also turned in stellar reports.

Apple reported per-share earnings of $2.58, ahead of expectations of $2.04, with revenue of $59.7 billion, well above the $52.2 billion analysts were expecting, per Yahoo Finance.

"In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation." CEO Tim Cook said in a statement.

Between the lines: A stock split doesn't increase or decrease a company's overall value, but makes each individual share less costly to purchase. As for Apple, each shareholder at the close of business on August 24 will receive three additional shares for each one they one, with trading on a split-adjusted basis beginning Aug. 31.

By the numbers:

  • iPhone revenue was $26.4 billion.
  • Mac sales were $7.1 billion.
  • iPad revenue was $6.6 billion.
  • Services revenue was $13.2 billion.
  • Wearables and home product sales were $6.5 billion.
  • International sales accounted for 60 percent of the quarter’s revenue.
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